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24 March 2009

EFRAG draft comment letter on FCAG’s request for input


The information needs of capital market participants are not the same as those of prudential regulators, EFRAG says. It is of fundamental importance that those different information needs mean different financial reporting objectives.

The information needs of capital market participants are not the same as those of prudential regulators, EFRAG says in its comment letter to the joint IASB/FASB working group.

 

It is of fundamental importance that those different information needs mean different financial reporting objectives, and that could be different reporting, EFRAG underlines adressing the need for a debate about financial reporting.

 

With regard to the pro-cyclicality aspects of existing accounting practices EFRAG encourages the IASB to have a careful look at the causes. EFRAG belives that the causes of pro-cyclicality can be found in the area of fair value measures and loan loss provisioning. Also, disclosure of off-balance sheet risk and whether such risks should remain off-balance sheet is another important area that needs to be investigated carefully, EFRAG notes.

 

Deadline for comments is 30 March 2009

 

The draft comment letter is attached below.

 



© EFRAG - European Financial Reporting Advisory Group

Documents associated with this article

EFRAGs draft response to the FCAG request for input.pdf


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